Time limit to Deposit TDS and File TDS Return FY 2022-23
This article covers all the information about TDS related compliances.
Union Budget 2022 updates
- New Section 194S- A person is liable for Tax Deduction at Source (TDS) at 1% at the time of payment of the transfer of virtual digital assets.
- Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.
- New Section 194R- TDS at 10% should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident.
Forms for Filing TDS Returns
| Form No. | Description |
| Form 24Q | Quarterly TDS statement for tax deducted on salary payments. |
| Form 26Q | Quarterly TDS statement for tax deducted while making payment to non-resident (not being a company), foreign company and persons who are not ordinarily resident |
| Form 27Q | Quarterly TDS statement for other cases like TDS deducted on professional fees, interest payments, etc. |
However, if tax is deducted at source under Sections 194-IA and 194-IB, the deductor shall furnish a challan-cum-statement in Form 26QB and Form 26QC, respectively. The deductor should provide the challan-cum-statement within 30 days from the end of the month in which TDS is deducted. As an exception, no return is required separately in such cases.
TDS Payment Due Dates
The dates for depositing the tax deducted at source and filing of TDS return for the financial year 2022-23 for all the deductors is shown in the below table-
| Quarter ending | Month of deduction | The due dates for payment of tax deducted (FY 2022-23)* | Due date for filing TDS Return for the FY 2022-23 for all the deductors |
|---|---|---|---|
| 30th June 2022 | April 2022 | 7th May 2022 | 31st July 2022 |
| May 2022 | 7th June 2022 | ||
| June 2022 | 7th July 2022 | ||
| 30th September 2022 | July 2022 | 7th August 2022 | 31st October 2022 |
| August 2022 | 7th September 2022 | ||
| September 2022 | 7th October 2022 | ||
| 31st December 2022 | October 2022 | 7th November 2022 | 31st January 2023 |
| November 2022 | 7th December 2022 | ||
| December 2022 | 7th January 2023 | ||
| 31st March 2023 | January 2023 | 7th February 2023 | 31st May 2023 |
| February 2023 | 7th March 2023 | ||
| March 2023 | 7th April 2023 (for tax deducted by govt. office) | ||
| 30th April 2023 (for other deductors) |
*All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government without challan (Treasury Challan) should be deposited on the same day of deduction. Only for tax deducted by the government office during the month of March 2023 should be deposited by7th April 2023.
Penalty for Late Filing of TDS/TCS Returns
Late Filing Fee (Sec 234E)
Under Section 234E, the person who is required to deduct/collect TDS/TCS will have to pay a fine of Rs 200 (two hundred) per day until the TDS return is filed. The deductor of TDS shall be liable to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.
For example: Say that you have deducted TDS of Rs 5000 on 13th May 2022 and you file the return for Q1 on 17th November 2022 instead of the due date 31st July 2022.
The delay is 109 days counting from 1st August 2022 to 17th November 2022.
Then the calculation comes out to Rs 200 x 109 days = Rs 21,800, but since this amount is greater than TDS Rs 5000, you will have to pay only Rs 5000 as the late filing fee.
In addition to this, you also have to pay interest for delay in deposit of TDS which is covered in the next section.
Penalty (Sec 271H)
The Assessing Officer may direct a person who fails to file the statement of TDS/TCS within the due date to pay a minimum penalty of Rs 10,000 which may be extended to Rs 1,00,000. The penalty under this section is in addition to the late filing fee u/s 234E. This section will also cover the cases of incorrect filing of TDS returns.
No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:
- The tax deducted/collected at source is paid to the credit of the Government.
- Late filing fees and interest (if any) is paid to the credit of the Government.
- The TDS/TCS return is filed before the expiry of a period of one year from the due date specified on this behalf.
Interest on Late Deposit of TDS
| Section | Nature of Default | Interest subject to TDS/TCS amount | Period for which interest is to be paid |
|---|---|---|---|
| 201(1A)(i) | TDS not deducted (fully/partly) | 1% per month | From the date on which tax is deductible to the date on which tax is actually deducted. |
| 201(1A)(ii) | TDS not deposited to the government after deduction (fully or partly) | 1.5% per month | From the date of tax deduction to the date of deposit |
Note: The above interest should be paid before filing of TDS return.
Under Section 201(1A), in case of late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not on the number of days i.e. part of a month is considered as a full month.
- For example, the date of deduction of TDS of Rs 5,000 is 13th January 2022. If you pay TDS on 17th May 2022, then the interest you owe is from 13th January 2022, i.e. is Rs 5000 x 1.5% p.m. x 5 months (Jan-May)= Rs 375.
- “Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
- The interest is calculated from the date on which TDS was deducted and not from the date TDS was due.
- Also, consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 21st February 2022. Then the due date is 7th March 2022. If you deposit tax on 8th March 2022 (i.e. one day after the due date). Then interest is applicable from 21st February 2022 to 8th March 2022 i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3% on the TDS amount.
Prosecution (Sec 276B)
If a person fails to pay to TDS to the credit of the Central Government as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term not less than three months but which may extend to seven years, and with a fine.
Penalty provisions due to COVID-19 lockdown 2020
In the wake of the lockdown, the department has waived off all the penalty provisions for the period between 20th March 2020 to 30th June 2020 as per the Ordinance 2020. In the normal period of business, a penalty equal to the amount that was failed to be deducted/collected or remitted may be imposed.
Penalty for Late Payment or Non-Payment of TCS
If the person fails to collect tax at source (TCS) or collects tax (TCS) but fails to deposit to the government within the prescribed due dates, then he is required to pay interest at the rate of 1% per month or part thereof on the TCS amount. The tax collector is liable to pay interest from the date on which such tax was collectable to the date the tax was actually paid.
Frequently Asked Questions
Is TDS paid monthly?
If the deductors (other than office of government) deduct TDS in any month, tax must be paid on or before 7th of the next month. However, the TDS deducted in the month of March can be deposited till 30th April. For TDS deducted on rent and purchase of property, the due date is 30 days from the end of the month in which TDS is deducted.
How is TDS calculated on salary?
TDS on salary is calculated according to the income tax slab applicable to the employee after adjusting all eligible deductions and exemptions. Salary is one of the incomes where the employer (deductor) deducts full tax liability as TDS.
Can I file TDS return after the due date?
You can pay TDS after the due date, however penalty of Rs 200 per day as per Section 234E needs to be paid. The deductor is liable to pay the penalty for every day during which the failure continues. However, the amount of late fees cannot exceed the TDS.
Also, penalty under Section 271H can be levied by the department which is in the range of Rs 10,000 – Rs 1,00,000. Penalty under this Ssection is in addition to the late filing fees specified above under Section 234E.
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